Indiana governor prolongs gas tax break through early September

On Wednesday, Governor Mike Braun signed an additional emergency order that prolongs Indiana's suspension of the 7% gasoline sales tax and the 36-cent-per-gallon state gas tax until at least Sept. 5. The move builds on an April emergency order that originally halted the sales tax for 30 days and a May pause on the gas tax, now invoking a fresh 120-day authority tied to global energy distribution challenges linked to the war in Ukraine and Canadian wildfires.

Braun said the continuation aims to keep fuel prices among the lowest in the nation and will be reassessed in a month. He also indicated that state budget reserves will be used to fund infrastructure projects despite the tax break. Attorney General Todd Rokita affirmed that Indiana’s emergency statutes allow separate declarations based on differing conditions, supporting the legality of Braun’s extension. The policy marks an unprecedented combination of tax suspensions not seen since former Governor Frank O’Bannon’s partial sales-tax pause two decades ago.